POLENERGIA GROUP 1H 2019 Results13 August 2019

WIND POWER CONVENTIONAL ENERGY DISTRIBUTION TRADING

In case of divergence between the language versions, the Polish version shall prevail.

2

Fact Outcome/Comment

▪ Increased Company value

― On 26.07.2019 Societe Generale raised the share price quotation to PLN 33.8

— Share price increase from PLN 20.5 as at 31.12.2018 up to PLN 26.4 as at 30.06.2019 and PLN 27,5 as at

06.08.2019

— Between 31.12.2018 and 06.08.2019 the capitalization of the Company increased by PLN 318m.

▪ Stabilization of prices of green certificates in Q2 — After a temporary drop in March, the green certificates’ prices rebounded to the level of ca. PLN 130/MWh in

Q2.

▪ Increase in prices on the forward power market in Q2 — In Q1 electricity prices on the forward market dropped from ca. PLN 280/MWh to PLN 260/MWh.

— In Q2 the prices rebounded to the current level of ca. PLN 270-280/MWh

— The fluctuations in the forward market are correlated with the changes in CO2 emission allowance prices.

— The increase in electricity prices for forward contracts from PLN 259.3/MWh as at 29.03.2019 to PLN

273.6/MWh as at 28.06.2019 (PLN 284.5 as at 5.08.2019).

▪ Amendment of the RES Act - forthcoming change of regulation

― On 19 July 2019 the Polish lower chamber of Parliament passed an amendment to the

RES Act. On 2 August Senate passed the act without making any amendments. The

bill was passed to the president.

— The amendment deals, among others, with the rules for holding RES auctions; it also governs the provisions

and deadlines for project implementation.

— The wording of the amendments specifies the maximum quantities and amounts of RES energy thus permitting

a RES auction still in 2019.

▪ The Act to freeze energy prices - regulation signed

― On 19 July 2019 the Minister of Energy signed the regulation for the Electricity Prices

Act.

— The Act has no significant impact on the financial results of the Group.

— Since the legislative process is over now, we expect improved liquidity on forward markets to positively influence

the Group’s operations.

▪ Debt prepayment in Amon and Talia wind farms — According to the loan agreement, the loan was prepaid from the surplus cashflow of 8.3m (Amon PLN 3.5m,

Talia PLN 4.8m).

— Since the beginning of the year, Amon and Talia have reduced their debt by 17.1m.

▪ PV - implementation plan for two projects with total power of 20MW — The Company began development of an 8MW project and has been preparing for participation in an auction with

further 12MW.

— Advanced discussions are continued with respect to the obtaining of debt financing for both projects.

▪ New tariff for Polenergia Dystrybucja — The President of the Energy Regulatory Office approved the electricity tariff applicable until 31.12.2019.

— The update of the tariff will help increase the distribution margin in Polenergia Dystrybucja.

▪ Amon’s claim re. PE-PKH’s termination of contracts granted by Court — The court ruled the PKH’s notices of termination ineffective and decided they had no legal effect of terminating

both contracts. The Court also determined that the claims for damages raised by Amon against PKH on account

of non-performance by PKH of the contracts for the sale of GC were justified. The judgment in not yet valid and

binding and may be complained against.

▪ Adjustment of PPA compensation and costs of gas compensation for 2018 in ENS — In July ENS was informed about PPA compensation granted along with the costs of gas compensation for 2018

totaling ca. PLN 39.8m.

Highlights Summary

3

Fact Outcome/Comment

▪ RES Act amendment

― No possibility to make use of the higher market prices for the projects participating in

the 2019 auction.

― Uncertainty regarding potential support in light of the notification process.

— Prior to the parliamentary discussion stage, the amendment provided for a minimum price formula permitting the

projects to make the most of the higher market prices.

— However, given the concerns that EC might refuse the notification approval, the projects participating in the

2019 auction will be governed by the existing rules.

— Extension of the support system from 2035 to 2039 requires a notification process.

— For auctions taking place prior to such notification the Energy Regulatory Office may restrict options to offer

energy until 2035.

Highlights Summary

0

5

10

15

20

25

30

35

10,6

10,8

11

11,2

11,4

11,6

11,8

12

12,2

Polish coal EUA

26,3

28,712,0

150

170

190

210

230

250

270

290

310

330

FWD 4Q18 FWD Cal19 FWD Cal20

275,6

293,6284,5

273,6

0

50

100

150

200

250

300

10

12

14

16

18

20

22

24

26

28

30Volume in k [right] Share price [left]

27,5

100

150

200

250

300

350

400

40

60

80

100

120

140

160

180GC price [left] EE price (IRDN24) [right]

132,2

193,7

286,4

134,9

* The average price of Green Certificates weighted by transaction volume in the same period amounted to: PLN 60,7/MWh

Prices of green certificates and electricity

4

Key indexes and market prices (last 12 months)

Quotations of Polenergia S.A. share prices

thousand

itemsPLN/share

26.4

1 2

Forward prices of electricityQuotations of coal prices in the Polish market and the rights

for CO2 emissions3 4

PLN/GJ EUR/TPLN/MWh

PLN/MWhPLN/MWh

Average price of Green Certificates in the period weighted by transaction

volume

133,7

Quarterly data

Electricity Green Certificates

82

167

103

2Q 20192Q 2018

185

-10%

Summary of key operating parameters - Wind power segment

WF (gross) Production and LF%1 Average fixed operating cost per

MW in WF* [PLN k/year]2 Average revenue per MWh (after balancing and profile cost) at the Group

level [PLN/MWh]3

5

152

185

2Q 20192Q 2018

+22%

53

99

2Q 2018 2Q 2019

+88%156 156

29%29%

2Q 2018 2Q 2019

0%

Q Load factor (%)

Q Production (GWh)

23

159

149

2018 2019

172

-7%

146

187

2018 2019

+29%

52

89

2018 2019

+69%

335

413

38%

2018

31%

2019

+23%

Q Load factor (%)

Q Production (GWh)

YTD data

Electricity Green Certificates

Average fixed operating cost per MW

Normalization*

* Average fixed operating cost in 2018 was normalized to include a positive

adjustment of PON declaration in GSRM (normalization in Q2 by part of the

adjustment referring to Q1) and reversal of historical cost of servicing - Vestas in

Mycielin.

Average fixed operating cost per MW

Normalization*

6

(Net) Production, YTD

Net productivity of Polenergia farms above the average*

Wind power - production

* Comparison made based on net productivity (after own consumption and losses) in view of the availability of data on that sector

**Calculation of net production of the sector in June based on the comparison of net production of Polenergia in June against the net production of Polenergia in April and May

THE USE OF STATE-OF-THE-ART TECHNOLOGIES, VERY GOOD LOCATION OF PROJECTS AND AN EXPERIENCED

TECHNICAL TEAM PERMIT TO CONSTANTLY ACHIEVE HIGHER OUTPUT THAN THE MARKET AVERAGE.

Dipol

22 MW

Talia

24 MW

Amon

34 MW

Gawłowice

48.3 MW

Rajgród

25.3 MW

Skurpie

43.7 MWMycielin

46 MW

Total

249.3 MW

314,1

391,2

2018

30%

36%

2019

+25%

77,7

85,9

69,2

84,9

59,6

74,0

31,5

42,8

35,4

44,2

23,8

30,1

16,1

22,7

0,8 6,5

20182019

39%

2018 2018

43%

2019

31%

2018

39%

2019

28%

2018

39%

2019

40%

24%

20182018 20182019

3%23%

29%

2019

17%

25%

24%

33%

2019 2019

30%

YTD Load factor (%)

YTD Production (GWh)

Krzęcin

6 MW

33,4%

23,3% 22,9%

37,0%

30,6%

19,2%17,3%

34,4%

29,3%27,0%

21,7%

39,1%

27,4%

22,8%19,0%

31,3%

38,5%

24,7%**

36,8%

26,1% 24,8%

40,7%

35,0%

22,2% 19,9%

38,9%

32,6%30,9%

25,3%

45,4%

32,1%

26,7%

20,7%

35,2%

45,7%

26,9%

1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019

Average load factor for wind energy in Poland Average load factor for Polenergia

35

72

38

73

Electricity sale (GWh) Electricity distribution

volume (GWh)

+9%

+2%

Summary of key operating parameters

Distribution segment – sales [GWh]4 5 Conventional energy segment - sales[GWh] and average prices[PLN/MWh]

2Q2018

2Q2019

183

71

154

81

Electricity sale (GWh) Heat sale (TJ)

-16%

+14% 171

61

250

58

Electricity avg.

price (PLN/MWh)

Heat avg. price

(PLN/GJ)

+46%

-6%

2Q2018

2Q2019

Quarterly data

7

YTD data

76

146

80

147

Electricity sale (GWh) Electricity distribution

volume (GWh)

+5%

+1%

YTD 2018

YTD 2019

171

47

250

47

Heat avg. price

(PLN/GJ)

Electricity avg.

price (PLN/MWh)

+46%

0%

388

240

361

243

Heat sale (TJ)Electricity sale (GWh)

-7%

+1%

YTD 2018

YTD 2019

86 92

1317

RAB as at

30.06.2018

RAB as at

30.06.2019

99110

+10%

RAB in progress*

RAB in the current tariff

*Expenditure already made but not reflected in the distribution tariff. Such inclusion will take place during successive

updates of the tariff.

2018

Q2

2019

Q2

(14,6)

11,4

18,447,6

+158%

133,0 133,4

0%

Summary of key figures

Revenues (excl. Trading)

▪ Increase in revenues as a result of the higher revenues of the

wind power segment.

EBITDA(normalized)

▪ Q2: increased normalized EBITDA predominantly as a result of

better performance of the trading segment (23.2m) and the wind

power segment (6.8m).

▪ YTD: increased normalized EBITDA mostly as a result of better

performance of the wind power segment (44.1m) and trading

(27.5m).

Net Profit(normalized)

▪ Increased net normalized profit results from higher EBITDA and

lower finance costs, as well as lack of tax efficiency in 2018 offset

by higher depreciation/amortization.

8

SIGNIFICANT IMPROVEMENT OF PERFORMANCE PREDOMINANTLY DUE TO BETTER WINDINESS, HIGHER PRICES OF

GREEN CERTIFICATES AND ELECTRICITY AND BETTER COMMERCIAL ACTIVITY RISK MANAGEMENT

51,3

(12,0)

57,3

127,9

+123%

275,7 313,1

+14%

2018

YTD

2019

YTD

EBITDA by operating segments

18,4

47,6

6,8

23,2

Unallocated

(0,7)

Conventional

Energy

DistributionEBITDA

2Q 2018

Wind Power

0,0

Trading

0,3 (0,5)

Development

and

implementation

EBITDA

2Q 2019

9

Comments

SIGNIFICANTLY BETTER PERFORMANCE OF WIND POWER AND TRADING SEGMENTS STABLE OPERATIONS IN THE

CONVENTIONAL ENERGY AND DISTRIBUTION SEGMENTS

Quarterly

Wind Power: better performance driven by higher production volumes and higher prices of green

certificates and electricity.

Conventional Energy: the drop in performance results from lack of revenues from yellow

certificates following the expiration, with the end of 2018, of the existing support system for gas

cogeneration, partly offset by higher stranded cost compensation revenues (negative impact of an

update of long-term prices of natural gas and CO2 allowances in 2018 Q2) and by higher revenues

from gas compensation for 2019 (higher Wg adjustment index). From the quarterly perspective,

lower revenues from gas compensation result mainly from lower cost of gas in 2019 Q2 and lower

electricity production in 2019 Q2 (overhaul).

Distribution: better performance due to higher distribution margin, lower operating expenditures

and refund of real estate tax, offset by lower margin on energy sales.

Trading: better performance due to better performance of electricity trading, better sales of green

certificates resulting from higher selling prices and lower operating expenditures, as well as lower

commission cost, partly offset by worse performance on sale of electricity from wind farms in view

of higher balancing and profiling costs.

Unallocated costs: Under unallocated costs segment we have also included the difference of

-0.5m from the biomass segment following the decision to stop distinguishing it as a separate

segment in 2019. Should this change be disregarded, the difference in the unallocated costs

segment would be 0.7 predominantly due to lower cost of external services at headquarters.

Development: worse performance due to higher costs of the segment allocated to profit and loss

account.

YTD

57,3

127,9

44,1

27,5

Conventional

Energy

EBITDA

YTD 2018

(1,2)

Distribution Development

and

implementation

Wind Power

0,1

Trading

0,2

Unallocated

(0,2)

EBITDA

YTD 2019

48

(27)

5

(8)

CFI2Q 2019

EBITDA

∆ WC CFF

(21)

(51)

1

CIT

0

Other 2Q 2019

NCF

(59)

128

(37)

(15)

CFFYTD 2019

EBITDA

(27)

CFI Other

(25)

∆ WC

(94)

(3)

CIT

0

YTD 2019

NCF

(110)

Cash flow Polenergia Group

• ∆ WC: change in receivables from electricity and provision for CO2

allowances in ENS, as well as reduction of certificates of origin inventory.

• CFI: capex in Onshore RTB, PV and distribution network development.

Additional payments to Offshore projects.

• CFF: predominantly debt service in wind power segment and conventional

energy segment, repayment of the overdraft facility by ENS (-35m),

incurring an overdraft facility by Trading (11.7m). Includes prepayment of

the investment loan of PLN 8m in Amon and Talia wind farms.

10

POSITIVE OPERATING CASH FLOWS OFFSET BY THE CHANGE IN WORKING CAPITAL IN THE TRADING AND DISTRIBUTION

SEGMENTS, REPAYMENT OF THE OVERDRAFT IN THE TRADING SEGMENT AND ENS AND PREPAYMENT OF THE LOAN IN

AMON AND TALIA WIND FARMS

Comments

YTD

Q2

Comments

• ∆ WC: commercial transaction settlement in Trading (-19m) and deferment

of settlement in Distribution (-3.5m).

• CFI: capex in Onshore RTB and PV projects and distribution network

development. Additional payments to Offshore project.

• CFF: predominantly debt service and lease costs in wind power segment,

conventional energy segment and distribution (-20m), repayment of the

overdraft facility in Trading (-17m) and debt repayment by ENS (-26m of

overdraft facility and -11m of long-term facility), incurring a loan by

Distribution (7m). Includes prepayment of the investment loan of PLN 15m

in Amon and Talia wind farms.

Loan prepayment

Loan prepayment

92%

6%1%

0%

1%

0%

11

Debt structure as at 30 June 2019

Debt structure according to segment

Debt structure according to currency (EUR vs. PLN)Debt structure - interest rate

hedging

Net debt YE2018 vs. Q2 2019)

CONTINUED REDUCTION OF NET DEBT

NO CURRENCY RISK. INTEREST RATE RISK HEDGED IN CA. 21%

PLN 822 m

Wind power

Biomass

Trading

Convent. Energy

Distribution

Other

97,9%

Debt in PLN

Debt in EUR2,1%

20,6%

79,4%

Unsecured debt

Debt secured

(594)(547)

YE2018 Q2 2019

-7,9%

PLN 822 m PLN 822 m

12

Summary of segment results

WIND POWER CONVENTIONAL ENERGY DISTRIBUTION TRADING

13

• EE production volume lower by 0.6 GWh, with GC production volume

higher by 0.1 GWh.

• Increase in prices of green certificates and electricity (totaling PLN 69.3).

• Operating expenditures higher as a result of one-off events: in 2018 some

of the historical costs of technical service were reversed in Mycielin

following an amicable settlement with Vestas (April), positive adjustment of

RET declaration for January - June was recognized in GSRM and no

operating cost was borne in Krzęcin until end of May.

Operating segments

10,3

Other2Q 2018

(0,1)

Volume

effect

Price effect

0,8

Balancing

costs

(4,0)

Operating

costs

(0,2)

2Q 2019

32,9

26,1 +26%

30,832,913,2

Electricity Green

certificates

1,0

(1,7)

Balancing

costs

(10,4)

Operating

costs

Other 2Q 2019

1 EBITDA build-up

2 EBITDA bridge

Comments

Wind power - Q2

HIGHER SALES PRICES OF GREEN CERTIFICATES AND ELECTRICITY

14

• EE production volume higher by 77.1 GWh, with GC production volume

higher by 78.1 GWh.

• Increase in prices of green certificates and electricity (totaling PLN 69.8).

• Operating expenditures were higher as a result of one-off events: in 2018

some of the historical costs of technical service were reversed in Mycielin

following an amicable settlement with Vestas, positive adjustment of RET

declaration for January - June was recognized and only in late May the

takeover of Krzęcin wind farm took place (no costs related to that wind farm

had been borne by most of the half-year period).

Operating segments

49,3

93,5

22,7

22,7

Operating

costs

Price effect2Q 2018 Volume

effect

0,9

Balancing

costs

(1,3) (0,8)

Other 2Q 2019

+90%

81,993,534,1

1,8

Operating

costs

Electricity 2Q 2019Balancing

costs

Green

certificates

(4,5)

(19,9)

Other

1 EBITDA build-up

2 EBITDA bridge

Comments

Wind power - YTD

HIGHER PRODUCTION VOLUME, HIGHER SELLING PRICES OF GREEN CERTIFICATES AND ELECTRICITY

15

14,0 13,32,8

Heat

0,0

EBITDA

2Q2018

Gas

Compensation

Electricity*

(2,0)

(2,1)

Yellow

certificates

0,7

Mercury EBITDA

2Q2019

-5%

2,5

13,3

1,3

8,6

Electricity* Heat Yellow

certificates

Gas

Compensation

Mercury

0,80,0

EBITDA

2Q2019

Operating segments

• Lack of revenues from yellow certificates in 2019 following the expiration,

with the end of December 2018, of the existing support system for

cogeneration.

• Better performance on electricity results from higher stranded cost

compensation revenues (in 2018 Q2 negative impact of an update of prices

of natural gas and CO2 emission allowances throughout the entire 2018).

• Lower revenues from gas compensation result mainly from lower cost of

gas in 2019 Q2 and lower electricity production in 2019 Q2 (overhaul),

partly offset by the effect of a higher Wg index in 2019 Q2 vs. 2018 Q2

(0.55 vs. 0.46).

* Includes stranded cost compensation and revenue from black-start services

1 EBITDA build-up Comments

Conventional energy - Q2

2 EBITDA bridge

STABLE OPERATIONAL ACTIVITY LOWER EBITDA DUE TO NO REVENUES FROM YELLOW CERTIFICATES AFTER THE GAS

COGENERATION SUPPORT SYSTEM EXPIRED WITH THE END OF 2018.

16

5,2

EBITDA

YTD 2019

Yellow

certificates

EBITDA

YTD 2018

Electricity*

31,10,1

Heat

0,5

Gas

Compensation

0,5

(7,6)

Mercury

29,8-4%

5,6

29,8

20,8

1,2

Electricity*

0,0

2,3

Heat Gas

Compensation

Yellow

certificates

Mercury EBITDA

YTD 2019

Operating segments

• Lack of revenues from yellow certificates in 2019 following the expiration,

with the end of December 2018, of the existing support system for

cogeneration.

• Better performance on electricity results from higher stranded cost

compensation revenues (in 2018 H1 negative impact of an update of prices

of natural gas and CO2 emission allowances for 2018).

• Higher revenues from gas compensation result mainly from higher forecast

Wg index in 2019 H1 vs. 2018 H1 (0.55 vs. 0.46) less the impact of lower

electricity production in 2019 H1 (overhaul of the gas and steam turbine),

and lower cost of gas in 2019 H1.

* Includes stranded cost compensation and revenue from black-start services

1 EBITDA build-up Comments

Conventional energy - YTD

2 EBITDA bridge

STABLE OPERATIONAL ACTIVITY. LOWER EBITDA DUE TO NO REVENUES FROM YELLOW CERTIFICATES AFTER THE GAS

COGENERATION SUPPORT SYSTEM EXPIRED WITH THE END OF 2018.

17

Distribution - Q2

0,3

EBITDA

2Q 2018

(0,4)

Electricity

sale

0,2

Distribution

0,0

OPEX Other

(0,1)

Polenergia

Kogeneracja

EBITDA

2Q 2019

3,4 3,4

4,7 0,1

Electricity sale Distribution

(2,3)

OPEX

0,5

Other Polenergia

Kogeneracja

EBITDA

2Q 2019

0,5

3,4

Operating segments

1 EBITDA build-up Comments

2 EBITDA bridge

STABLE OPERATIONAL ACTIVITY. IMPACT ON EBITDA IS EXERTED BY LOWER SALES MARGIN ON ELECTRICITY OFFSET

BY INCREASED MARGIN ON DISTRIBUTION OF ELECTRICITY AND THE REAL ESTATE TAX REFUND

In 2019 Q2 the distribution segment achieved EBITDA at the level

comparable to the corresponding period of the preceding year which has

mainly been the effect of:

• lower energy sales margin,

• higher distribution margin,

• refund of the real estate tax.

18

Distribution - YTD

Electricity

sale

0,7

(1,1)

EBITDA

YTD 2018

Distribution

0,2

7,1

OtherOPEX

0,3(0,1)

Polenergia

Kogeneracja

EBITDA

YTD 2019

7,2

9,6

Electricity sale Distribution EBITDA

YTD 2019

(4,5)

OPEX

0,7

Other

0,3

Polenergia

Kogeneracja

1,1

7,2

Operating segments

1 EBITDA build-up Comments

2 EBITDA bridge

STABLE OPERATIONAL ACTIVITY. HIGHER EBITDA DUE TO THE INCREASE OF THE MARGIN ON ELECTRICITY

DISTRIBUTION, LOWER OPERATING EXPENDITURES AND REAL ESTATE TAX REFUND

The distribution segment showed a growth of EBITDA by PLN 0.1m in 1H

2019, mainly due to:

• higher distribution margin,

• lower operating expenditures (lower real estate costs and salaries cost),

• refund of the real estate tax,

• lower energy sales margin.

19

(20,4)

2,9

EBITDA

2Q 2018

Margin - wind

farm portfolio

1,1

Margin - trading

21,3

0,8

Margin - other

contracts

0,2

Operational costs

and provisions

EBITDA

2Q 2019

Operating segments

3,1 2,90,8

1,5(2,5)

EBITDA 2Q 2019Margin - trading Margin - wind

farm portfolio

Margin - other

contracts

Operational costs

and provisions

• Better performance of electricity trading due to improved commercial activity

risk management.

• High margin on WF portfolio due to higher prices of green certificates, partly

offset by increased profile and balancing cost (which is not totally allocated to

wind farms).

• Better performance on other contracts.

• Lower operating costs and lower commission costs.

1 EBITDA build-up Comments

Trading - Q2

GOOD PERFORMANCE ON TRADING OF ELECTRICTY AND GREEN CERTIFICATES, AS WELL AS OTHER CONTRACTS,

COUPLED WITH LOWER OPERATING COSTS

2 EBITDA bridge

20

(21,6)

5,9

3,30,6

Margin - wind

farm portfolio

EBITDA

YTD 2018

22,5

Margin - trading

1,2

EBITDA

YTD 2019

Margin - other

contracts

Operational costs

and provisions

352%

Operating segments

5,45,92,8

2,5

Margin - trading Margin - other

contracts

Margin - wind

farm portfolio

(4,7)

Operational costs

and provisions

EBITDA YTD 2019

• Better performance of electricity trading due to improved commercial activity

risk management.

• High margin on WF portfolio due to higher prices of green certificates, partly

offset by increased profile and balancing cost (which is not totally allocated to

wind farms).

• Better performance on other contracts.

• Lower operating costs and lower commission costs.

1 EBITDA build-up Comments

Trading - YTD

GOOD PERFORMANCE ON TRADING OF ELECTRICTY AND GREEN CERTIFICATES, AS WELL AS OTHER CONTRACTS,

COUPLED WITH LOWER OPERATING COSTS

2 EBITDA bridge

21

Onshore RTB (Dębsk, Szymankowo, Kostomłoty, Piekło):

• The Group possesses a project portfolio with total capacity of 199MW which are in the final

development phase. Building permits have been issued for those projects, too.

• The Group continues preparatory work to create a wind farm project portfolio based on the

revenue from the energy market or its long term contracts. The Group has not excluded its

participation in any potential auction for wind farm that may take place in 2019, either.

Offshore:

• The Group prepares three offshore wind farms (Polenergia Bałtyk I S.A., MFW Bałtyk II Sp. z

o.o. and MFW Bałtyk III Sp. z o.o.) located on Baltic Sea with total capacity up to 3000 MW.

• The date of construction of those farms will depend on when the relevant regulatory

framework is in place.

• On 28 January 2019 the company MFW Bałtyk II sp. z o. o. was granted connection terms

providing for connection of Bałtyk Środkowy II offshore wind farm totaling 240MW which

means a potential increase of the total capacity of the offshore wind farms (MFW Bałtyk II sp.

z o. o. and MFW Bałtyk III sp. z o. o.) from 1200 MW to 1440 MW. A meeting was also held

with PSE to discuss the issue of connecting 240 MW under the connection terms for MFW

Bałtyk II granted by PSE.

• On 30 January 2019 the company Polenergia Bałtyk I S.A. was granted the connection terms

for the developed project of an offshore wind farm Bałtyk Północny. According to those terms,

connection has been provided for of an offshore wind farm of the total capacity of 1560 MW.

• On 9 May 2019 a Supplier Day event was held. It was the first meeting of this kind with

representatives of the companies from the Polish supply chain for offshore wind farm projects.

It was a perfect opportunity to establish good relations with the potential local suppliers of

components and services for the projects and to discuss potential future cooperation.

PV:

• The Company developing photovoltaic farm projects with total capacity of 8MW was the

successful bidder in an auction and thus was granted the right to cover the negative balance

with reference to the price for the produced electricity quoted in the auction for a 15-year

period.

• Implementation process is ongoing to develop a photovoltaic plant with total capacity of 8

MW.

• Preparations are being made to further auctions expected in 2019 with photovoltaic power

plant projects of the total capacity of 12 MW. Even further projects with the capacity of 30 MW

are at their early stage of development.

Wińsko:

• This project is offered for sale to potential buyers; preliminary talks are held with prospective

stakeholders.

Projects under development

FURTHER DEVELOPMENT OF OFFSHORE WIND FARMS AND THE INCREASE OF THE TOTAL POLENERGIA PROJECT

POTENTIAL TO 3,000 MW. CONTINUED DEVELOPMENT OF 199MW ONSHORE WIND FARMS AND 50MW PV PLANTS (OF

WHICH 8 MW WITH GUARANTEED SUPPORT)